February 09, 2026 a 03:31 pm
PFE: Dividend Analysis - Pfizer Inc.
Pfizer Inc. has maintained a dividend legacy that spans over five decades, reflecting resilience and a commitment to returning value to shareholders. The pharmaceutical giant's dividend yield is notably high, bound to attract income-focused investors. However, the payout ratios suggest fragility in sustainable earnings, cautioning potential investors to watch underlying profitability closely.
📊 Overview
Pfizer operates within the healthcare sector, specifically pharmaceutical and biotechnology innovations. The company’s generous dividend yield of 6.71% is a testament to its shareholder return policy. Pfizer's current dividend per share stands at $1.72, with a credible history of 55 years without a notable cut, solidifying investor confidence.
| Metric | Details |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 6.71% |
| Current Dividend Per Share | $1.72 |
| Dividend History | 55 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Pfizer's consistent dividend payments signify a robust capacity to distribute profits across various economic climates. This reliability is vital for investors seeking consistent income. The absence of a dividend cut in recent history is favorable.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 0.43 |
| 2025 | 1.72 |
| 2024 | 1.68 |
| 2023 | 1.64 |
| 2022 | 1.60 |
📈 Dividend Growth
The slow yet positive dividend growth over three and five years indicates a modest capacity for expansion, taking into account industry challenges. Growth parameters suggest the potential for sustainable dividends if earnings stabilize.
| Time | Growth |
|---|---|
| 3 years | 2.44% |
| 5 years | 2.50% |
The average dividend growth is 2.50% over 5 years. This demonstrates moderate but steady dividend growth.
📉 Payout Ratio
The high payout ratios based on both EPS and Free Cash Flow indicate that a significant portion of earnings and cash flow are allocated to dividends, possibly limiting reinvestment opportunities or suggesting earnings volatility.
| Key Figure | Ratio (%) |
|---|---|
| EPS-based | 125.80% |
| Free cash flow-based | 213.90% |
Comparatively, the EPS payout ratio of 125.80% suggests sustainability challenges, while the FCF payout ratio of 213.90% intensifies concerns over long-term dividend viability.
⏳ Cashflow & Capital Efficiency
Analyzing Pfizer's cash flow efficiency reveals the importance of cash generation in sustaining both company operations and shareholder returns. Key metrics indicate areas of potential strength and necessary improvements.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 2.95% | 6.55% | 0% |
| Earnings Yield | 1.31% | 5.34% | 5.49% |
| CAPEX to Operating Cash Flow | 44.91% | 22.83% | 0% |
| Stock-based Compensation to Revenue | 0.88% | 1.38% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 55.09% | 77.17% | 0% |
The cash flow metrics show stability leaning towards potential growth opportunities, although optimizing CAPEX can further enhance efficiency benefits.
📊 Balance Sheet & Leverage Analysis
Understanding Pfizer's leverage and liquidity are crucial for assessing financial health. Analyzing these dimensions ensures the company's longevity and debt-handling capabilities.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 79.59% | 75.95% | 0% |
| Debt-to-Assets | 31.28% | 31.39% | 0% |
| Debt-to-Capital | 44.32% | 43.17% | 0% |
| Net Debt to EBITDA | 7.11 | 3.64 | 0 |
| Current Ratio | 0.91 | 1.17 | 0 |
| Quick Ratio | 0.69 | 0.92 | 0 |
| Financial Leverage | 2.54 | 2.42 | 0 |
The leverage ratios remain manageable but reflect potential vulnerabilities under economic stress. Enhancing liquidity would stabilize the firm’s financial foundation.
✅ Fundamental Strength & Profitability
Focusing on profitability metrics is crucial. These determine Pfizer's ability to generate profit relative to revenue, assets, and sector positioning.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 2.40% | 9.09% | 8.35% |
| Return on Assets | 0.94% | 3.76% | 0% |
| Margins: Net | 3.58% | 12.60% | 12.42% |
| Margins: EBIT | 5.49% | 17.47% | 16.29% |
| Margins: EBITDA | 16.05% | 28.49% | 24.12% |
| Margins: Gross | 50.95% | 65.77% | 70.33% |
| Research & Development to Revenue | 17.76% | 16.88% | 19.14% |
The company demonstrates solid profitability metrics crucial for continued operational success, though improvement in ROA could enhance investment returns.
📉 Price Development
📊 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
✅ Rating
The analysis presents Pfizer Inc. as a prominent dividend player with robust historical payment consistency. However, high payout ratios coupled with lower profitability metrics suggest caution. This is a choice for dividend-focused strategies, with a need for monitoring financial health improvements for sustained growth and income potential.